Will cost of flat considered as what I paid or the registered value of flat ?

POSTED BY santhosh kumar ON January 4, 2014 8:57 am COMMENTS (3)


I bought a property in bangalore through resale. Means 1st buyer booked the flat some time back with the builder and then when the property was ready for possession he sold it without registering it.

1st buyer bought it for 30 lakhs and sold it to me for 45 lakhs(full cheque transaction) and transferred the ownership to my name with builder. So builder registered the flat on my name. But registered value was 30 lakhs as builder sold it to 1st buyer for tht cost. Since i couldn’t force the builder to register the property at 45 lakhs, i agreed and did the registration at 30 lakhs.

Now when i am selling the flat, since i have a proof that i paid 45 lakhs for the flat, will the income tax office consider the purchase cost as 45 lakhs instead of referring to the value in sale deed.

Please let me know your thoughts.




3 replies on this article “Will cost of flat considered as what I paid or the registered value of flat ?”

  1. ashalanshu says:

    Dear Santhosh, if you can prove that it was indeed 45L Rs. transaction from your side, yes, you ‘ll get the benefit of transaction value to be considered as base value for Long Term Capital Gains calculation.



  2. santhosh kumar says:

    I have full proof for paying the 45lakhs in cheques including sale MOU etc. Also since builder didn’t get the money he dont want to register it for 45lakhs. can i show all the valid proof of sale to justify that purchase cost is 45 lakhs?

  3. They will be taking into consideration only REGISTERED VALUE , which is there in registration document (sale deed etc)


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